Strong ISA performance encouraging, says IMA

New data from the Investment Management Association (IMA) indicates that renewed consumer confidence is boosting the fund management industry.

The organisation’s investment fund statistics for August 2009 show that net retail sales totalled £2.2 billion, the highest figure on record for that month, while ISAs continued to perform well.

According to the figures, net ISA sales reached £150.6 million in August this year, meaning that payments into such tax-free funds have now increased for six consecutive months.

IMA chief executive Richard Saunders commented: ’Investors continued to add to their holdings in August, as they have been doing all year so far.’

He added that the ISA figures were ’particularly encouraging’, mainly because the six months of net inflows has followed ’five years of withdrawals’.

In response to the data, FTAdviser.com said the figures suggest that ISAs are ’playing an ever bigger part in the investors’ toolbox’.

The IMA also revealed that funds under management reached £439 billion in August - their highest level since May 2008.
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